Company Registration in Norway
Norway is a vibrant nation and has an abundance of natural resources, making it among the largest energy-rich nations globally. With a per capita of USD 106,148, the nation is poised as one of the wealthiest countries in the world. Despite being an EU non-member, Norway has signed a European Economic Area (EEA) agreement, allowing it access to a significant portion of the EU market. Overseas businesses can plunge into the Norwegian market and make the most out of it. To start a business quest, one must have a Company registration in Norway. Let’s see how you can secure it as a foreign applicant.
Why Choose Norway for Business Endeavors?
Before you strive for company registration in Norway, get aware of the potential this nation has from a business standpoint.
- Norway’s strategic location ensures unmatched international business as its boundaries connect with Finland, Sweden, Denmark, and Russia.
- The country is enriched with natural resources like minerals, forests, hydropower, and petroleum. Petroleum production is on the higher side.
- In 2023, the nation witnessed the GDP growth of 1.2%.
- Norwegian government ensures holistic control over large entities and key sectors, including petroleum, reinforcing transparency and level field play.
- The nation favors a liberal trade environment for all business types regardless of nationality.
- The country ranks amongst the top 4 largest exporters of natural gas globally.
- Norway manages world-class shipping, making it the 4th largest globally in terms of value.
- Other key industries contributing to the nation’s economy include fish farming, shipping, shipbuilding, green technologies, communication, and light metals.
Key Pointers Concerning Company Registration in Norway: A Foreign Entrepreneurs Checklist
Overseas entrepreneurs must keep the following pointers in mind when striving for company registration in Norway:
Norwegian Organisation Number Requirement: Overseas entities intending to pursue business endeavors in Norway must have a Norwegian organization number, either by forming a company or a branch, technically known as NUF.
Registration with the Register of Business Enterprises: Foreign companies dealing with commercial endeavors must registered with the Register of Business Enterprises. The non-commercial businesses are required to get registered with the Register of Legal Entities.
Designated Contact Person: An NUF i.e. the branch office must have a contact person no matter the nationality. Such a person must have a Norwegian national ID or d-number. If the contact person lacks such credentials, he/she must apply for the same alongside the registration form.
Employee Registration and Social Rights: Foreign employees serving the NUF must be registered. The social rights available to them are akin to what’s accessible to a local employee, including entitlement to unemployment benefits and sick pay.
Value Added Tax (VAT) Compliance: Norwegian VAT rules apply to all types of entities regardless of nationality or sector. VAT registration becomes mandatory whenever an entity surpasses the limit of NOK 50,000 over twelve months. No VAT representative is required for registration purposes.
Tax Liability: The location of management and operations are the two key factors that define how much taxes a company would pay. The overseas business entirely managed within Norway is subjected to local taxes. Businesses with holding companies abroad are taxed as long as they operate from a business place in Norway.
Accounting and Reporting Requirements: Maintaining accounts and submitting annual financial statements are among the key compliances for taxable NUFs. Those falling outside the tax regime can apply for an exemption. NUFs with an annual turnover surpassing NOK 7 million must cater to audit requirements.
Documents Required for Company Registration in Norway
Private and Public Limited Liability Companies
- Shareholders Register
- Articles of Association
- Shareholders Registry for a Public Limited Liability Company
- Memorandum of Incorporation
- Details on the Appointment of Shareholders, Directors, and General Manager
- Auditor’s Declaration Concerning Paid-Up Share Capital
- Applicant’s Statement Regarding Contributions Verified by an Auditor
Partnership with Unlimited Liability
- Information on Partners
- Partnership Agreement
- Declaration from Auditors
- Appointment of Directors (if applicable)
- Signatures of Partners filed with the NRBE
Steps for Securing Company Registration in Norway
An applicant seeking a company registration in Norway must be aware of the following norms:
Private Limited Company
- Drafting an MoA i.e. charter document, reflecting the company’s objectives, rules, and management details is mandatory.
- If the applicant made a cash contribution, opening an account in a local bank is vital.
- Get in touch with the coordinated register notification for registration purposes. File application with the Norwegian Register of Business Enterprises (NRBE).
Public Limited Company
The overall process of registering such a company is akin to the aforementioned entity. The only exception here is that such companies are entitled to appoint at least three directors.
Partnerships with Unlimited Liability
- Drafting a partnership agreement is paramount for registering a partnership firm in Norway.
- The agreement must entail the partners’ details, liabilities the company’s object, and other key details.
- The liability of the partners can be either limited, unlimited, or on a pro-rata basis.
- Partnership agreement alongside other key information must be filed with NRBE.
Understanding Different Signature Requirements For NUF Registration
Signature requirements when registering in the Central Coordinating Register of Legal Entities
The form must enclose the contact person’s signature or the attestation of the general manager.
Signature requirements when registering in the Register of Business Enterprises
The form must enclose the approval of the Norwegian board or general manager’s sign.
Conclusion
Company Registration in Norway attracts plenty of legalities and paperwork, which differ structure-wise. Make sure to imbibe local laws and tax regulations before you leap into the Norwegian corporate world. Doing so will give you an idea of imminent operating expenses and laws for operating the business. If you find doing so bothersome, let Adviso be your reliable partner in your business endeavors. With a vast network of seasoned professionals and global footprint, we take pride in delivering top-notch consultancy services to those seeking to set up a business abroad.
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